Gamestop bets on Bitcoin: 500 million dollars for 4,710 tokens!

Gamestop bets on Bitcoin: 500 million dollars for 4,710 tokens!

Gamestop is betting on the digital currency and recently acquired 4,710 Bitcoin tokens worth around $513 million (€453 million). This major purchase represents a significant step in the company's strategy and follows the trend that many companies are currently moving towards cryptocurrencies. Bitcoin has gained nearly 50 percent since its April low and reached an all-time high of over $110,000 last week, further fueling investor interest. On Wednesday morning, Bitcoin was trading at $109,035 in New York, underscoring the cryptocurrency's appeal.

The announcement of the Bitcoin purchase did not come without an impact on the stock market. Gamestop shares initially rose in premarket trading, but later fell by up to two percent to $34.36 (30.3 euros). Corporate investments in cryptocurrencies like those made by Gamestop are becoming increasingly common, inspired in part by the example of Microstrategy, whose shares rose 117 percent as a result of a similar strategy. Microstrategy holds over 580,000 Bitcoin tokens, which together represent a value of $33 billion (€29.1 billion).

Financing and strategic considerations

Gamestop had been planning to purchase the cryptocurrency since March 2023 and wanted to finance it by selling a convertible bond worth $1.3 billion (1.1 billion euros). This strategy shows that companies like Gamestop have growing confidence in the digital currency. Surprisingly, Norwegian crypto firm K33 also shares this view and has taken similar steps to buy Bitcoin. K33 raised $6.2 million through convertible loans and equity offerings to secure Bitcoin.

K33 CEO Bull Jenssen has stated that he sees Bitcoin as the best investment asset for the coming decade. This assessment reflects the increasing trust that companies are placing in cryptocurrencies. In addition, Trump Media & Technology Group has announced that it will raise $2.5 billion (€2.2 billion) for a Bitcoin treasury. Such moves show that cryptocurrency adoption is gaining momentum faster in the corporate world.

Market developments and future outlook

The buy-and-hold strategy, which is becoming increasingly common at Gamestop and other companies, is viewed as a long-term approach to maximizing capital gains. While Gamestop shares fell by over 10 percent after the Bitcoin purchase, this illustrates the partial uncertainty in the market. Similar declines were also seen at TMTG, whose shares also fell 6 percent on the day of the announcement.

The fluctuations and developments in the cryptocurrency sector require careful analysis from investors and companies alike. In Japan, Metaplanet, a former hotel management company, has now turned into a Bitcoin holding company and has seen an impressive 275 percent increase in its stock valuation this year. The momentum in the area of ​​crypto desires will continue to increase as more and more companies venture into the digital world.